Correlation Between Siit High and Transamerica High
Can any of the company-specific risk be diversified away by investing in both Siit High and Transamerica High at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Siit High and Transamerica High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and Transamerica High Yield, you can compare the effects of market volatilities on Siit High and Transamerica High and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Siit High with a short position of Transamerica High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Transamerica High.
Diversification Opportunities for Siit High and Transamerica High
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Siit and Transamerica is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Transamerica High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica High Yield and Siit High is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Siit High Yield are associated (or correlated) with Transamerica High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica High Yield has no effect on the direction of Siit High i.e., Siit High and Transamerica High go up and down completely randomly.
Pair Corralation between Siit High and Transamerica High
Assuming the 90 days horizon Siit High is expected to generate 1.1 times less return on investment than Transamerica High. In addition to that, Siit High is 1.05 times more volatile than Transamerica High Yield. It trades about 0.31 of its total potential returns per unit of risk. Transamerica High Yield is currently generating about 0.35 per unit of volatility. If you would invest 793.00 in Transamerica High Yield on May 2, 2025 and sell it today you would earn a total of 33.00 from holding Transamerica High Yield or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit High Yield vs. Transamerica High Yield
Performance |
| Timeline |
| Siit High Yield |
| Transamerica High Yield |
Siit High and Transamerica High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Transamerica High
The main advantage of trading using opposite Siit High and Transamerica High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, Transamerica High can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Transamerica High will offset losses from the drop in Transamerica High's long position.| Siit High vs. Simt Multi Asset Accumulation | Siit High vs. Saat Market Growth | Siit High vs. Simt Real Return | Siit High vs. Simt Small Cap |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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